Taguig city: Energy Secretary Sharon Garin on Tuesday assured the public that domestic fuel supply remains adequate and measures are now being undertaken along with oil players to ensure stable supply amid the ongoing conflict in the Middle East. In a briefing at the Department of Energy (DOE) office in Taguig City, Garin said oil companies are compliant on the minimum of 15 days' supply reserve, thus 'we have enough supply.'
According to Philippines News Agency, Garin highlighted that the DOE does not mandate oil companies to maintain a one-year supply due to cost and storage constraints. She emphasized that oil companies can quickly increase their supply, as it takes only a week to procure orders from the Middle East. "But they have more than that. They don't only have double the minimum requirement, they have three times the minimum requirement," she added.
Garin addressed the fluctuations in global oil prices, noting that while futures reached USD80 per barrel on Monday before declining to USD79 on Tuesday, projecting future price increases isn't necessary due to daily trading and high price volatility. DOE officials met with oil firms on Monday and plan another meeting on Wednesday to discuss contingency plans. "We are hoping for the best but we are preparing for the worst," she stated.
The DOE chief noted that about 98 percent of the country's crude oil supply originates from the Middle East, with the remaining 2 percent sourced from Malaysia and Brunei Darussalam. The supply from the Middle East is currently facing disruptions due to the closure of the Strait of Hormuz.
During the briefing, DOE Director Rino Abad of the Oil Industry Management Bureau (OIMB) remarked that oil companies are accustomed to increasing supply amid conflicts such as the ongoing situation between Iran and Israel. He mentioned previous agreements with oil companies to bolster supply and plans to reinforce those arrangements in the upcoming meeting.
Abad also noted that they will begin calculations for potential domestic price hikes on Wednesday, with final determinations expected by Saturday after the week's trading concludes. He explained that each company will decide on the implementation of standard increases, aiming for reasonable weekly adjustments.
In an interview following the briefing, Abad mentioned they are considering alternative oil import sources through private companies, looking at regions such as Africa, Canada, and South America.
